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Albanese Government Seeks Above-Inflation Rise for Minimum and Award Wages

A July ruling by the independent tribunal will decide pay for about a quarter of workers.

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CANBERRA, AUSTRALIA - OCTOBER 09: Minister for Employment and Workplace Relations the Hon Amanda Rishworth answers a question in Question Time on October 09, 2025 in Canberra, Australia. Australia's parliament convened for sittings as a number of pressing issues come to the fore, from inflation and cost of living domestically to Australia's relationship with its allies in the region and beyond internationally. (Photo by Hilary Wardhaugh/Getty Images)
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CANBERRA, AUSTRALIA - FEBRUARY 03: Treasurer Jim Chalmers addresses the chamber in Parliament House on February 03, 2026 in Canberra, Australia. Sessions resumed at parliament with a strong focus on the Liberal, National and One Nation parties as the former coalition loses substantial support and is embroiled in leadership turmoil. (Photo by Hilary Wardhaugh/Getty Images)

Overview

  • The Albanese Government, which lodged its submission Thursday, asked the Fair Work Commission for an economically sustainable real wage rise without naming a figure.
  • Ministers said higher petrol costs tied to conflict in the Middle East are squeezing low-paid households, making a pay lift urgent for baristas, care workers, clerks and cooks.
  • Inflation is 3.8 percent, and Treasury warned it could top 5 percent if global oil prices keep rising, raising the stakes for any decision on base pay.
  • Employer groups cautioned that a rise above inflation could fuel price pressures, while the government pointed to tax cuts and cheaper medicines to help contain costs.
  • The Fair Work Commission, Australia’s independent workplace umpire that sets the annual minimum and award wage, will weigh union, employer and government submissions before a July decision.